The European Central Bank stated Thursday that the euro's depreciation over the past year could add to inflationary pressures for the euro area.
In its latest account of the Governing Council monetary policy meeting, the institution added that several factors could clarify the euro's decline against the dollar. "These included the different implications of the energy shock for the economies' respective terms of trade, diverging cyclical conditions, and different risks associated with the war and the energy crisis."
However, the bank also recognized that the quick "tightening of US monetary policy was also seen to have played an important role."
